5.07 ERMUSR 11-14-2023�i
Elk River --�-
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Mark Hanson — General Manager
MEETING DATE:
AGENDA ITEM NUMBER:
November 14, 2023
5.07
SUBJECT:
Health Insurance Update
ACTION REQUESTED:
Approve the 2024 ERMU employee benefits offering including a continued employer
contribution to health savings accounts.
BACKGROUND:
Three years ago, ERMU moved to a health savings account (HSA) qualifying, high deductible
health insurance plan (HDHIP). With the move to HDHIP, the Wage & Benefits Committee
recommended that ERMU provide an 85% employer paid contribution to premiums and an
employer funded HSA in an amount that equates to 85% of an employee's deductible. At the
time of this change, it was agreed, the Commission would review the employer HSA
contribution annually.
DISCUSSION:
Through the benefits renewal process, we learned our current health insurance company (Blue
Cross Blue Shield) would be increasing rates by 5.5% along with increasing member deductibles.
As part of our benefit broker's regular process, our group was reviewed by other top health
insurance companies in the small group market. In doing so, an insurer (HealthPartners) was
found with a similar plan design and a smaller increase to 2023 rates at 4.3% and no increase to
member deductibles ($2,500 for single and $5,000 for family coverages).
Additionally, because we currently have HealthPartners for dental insurance, bundling our
health insurance with them will decrease our group's family dental rates by 25%. There will be
no other changes to ERMU's benefit offerings for 2024.
Staff recommends maintaining the original Wage & Benefit Committee recommendation of an
employer provided HSA contribution of 85%. The contribution is $2,125 for single coverage and
$4,250 for family coverage. The 2024 monthly premiums for medical coverage are $114 for
single, $228 for single +1, and $346 for family coverage.
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